Natural Gas ETF Surges On Data; What’s PetroChina Up To?

By Murray Coleman

Natural gas prices got a much-needed shot in the arm Thursday. The popular U.S. Natural GasFund (UNG) gained more than 7% and futures rose 17 cents to finish at $2.55 per 1,000 cubic feet in New York.

The jump came after the Energy Information Administration said that U.S. supplies dropped by 132 billion cubic feet last week. That was more than analysts had expected, good news for an industry in which overall storage levels remain well above five-year levels for this time of year.

Separately, some were saying today that PetroChina’s (PTR) move to take a 20% stake in Shell’s (RDSA) Groundbirch shale play in northeastern British Columbia may be more about “buying knowledge” than Canadian natural gas. At least that’s what Benchmark analyst Mark Gilman told Dow Jones Newswires. “They are trying to learn about this business, on the basis of their belief that it will better position them to assess and develop similar resources within China,” he said. In fact, Shell and PetroChina are exploring for shale together in China, so the Canadian deal may be a “quid pro quo” gesture to Shell, he added.

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FEBRUARY 2, 2012 4:56 P.M.

apppro, New York, NY wrote:

Petro and other foriegn companies/soveriegns, are buying shale stakes so as partially to get the technology, BUT more importantly to screw up OUR enviroment and water tables then EXPORT IT OUT OF THE CONTRY AT CHEAP PRICES SINCE WE ARE TOO STUPID TO USE IT HERE!

FEBRUARY 2, 2012 8:53 P.M.

Whoever wrote:

Once again a move not based on fundamentals........ your shot in the arm was leverage and manipulation..... I mean how often is the gas in storage 25% plus over the 5 year average and almost 25% year over year..... this was not real........ this was seller exhaustion and those that bought before trying to hold on while the big boys manipulate the price. If you are wondering..... I have never shorted anything..... when I buy as I have UNG its because I believe it should go up...... not now when there is NO reason.... its expected to be at a record 35% inventory sent 30 years ago by the time the summer comes around........ that is insane amount..... who .... who thinks this is a buy ......

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Chris Dieterich has covered the U.S. stock market for The Wall Street Journal and Dow Jones Newswires. He is a graduate of Regis University and the Missouri School of Journalism.